Coronavirus: Stocks to watch in Lockdown 2

Lockdown is back, so we've compiled our list of lockdown stocks to watch.

Boris Johnson’s announcement on Halloween was anything but unprecedented, given the leaks to the media earlier in the week. From 5 November, England went into another month-long lockdown to end on 2 December. When this happened back in March, we saw a global stock market crash which started the COVID-19 recession.

Will this lockdown, which is creatively being called “Lockdown 2”, cause another crash?

It’s unlikely that Lockdown 2 is going to have the same impact on the stock market that it had back in March, given that this time it’s expected.

However, if the first lockdown tells us anything, it’s that stocks that are likely to do well are those that offer value to people in lockdown. We were all using Zoom 20 times a day, favouring comfy clothes bought from boohoo and keeping fit with exercise bikes and treadmills bought on Amazon (did anyone keep that up?).

Without much else to do, especially with the weather getting colder, it’s likely that we’ll stick to the same habits this time around. “Alexa, add yeast and bread flour to my shopping list.”

So, without further ado, let’s look at some lockdown stocks to watch.

Online clothing retailers

The last lockdown saw an influx of people buying nice tops to look smart in Zoom calls (which were, undoubtedly, paired with some comfy pyjama bottoms). We should probably have enough to tide us over, but with the onset of cold weather, it’s time to stock up on jumpers and woolly tights.

With the closure of non-essential shops, this could be a big win for online clothing retailers like ASOS and boohoo, making both of these lockdown stocks to watch.

Food retailers

Essential shops like supermarkets are allowed to remain open during the second lockdown. After all, where else will we stock up on all that loo roll? These retailers have majorly upped their delivery slots since coronavirus came about too.

This could see a shift in shopping behaviour. If it’s got a delivery slot available, you can easily go with a supermarket you wouldn’t usually visit. What might be a longer drive or walk when not in lockdown is nothing more than a new tab during lockdown.

This makes companies like Tesco, Ocado and Sainsbury’s some lockdown stocks to watch.

Food delivery companies

With many fast food outlets having to become delivery-only from Thursday, it’s likely that companies like Just Eat and Deliveroo will see another increase in customers during Lockdown 2. It’s hungry business sitting around doing nothing all day.

The good news is that companies are in a much better position this time around, so it’s unlikely we’ll see McDonalds or KFC closing their doors during this lockdown. We’re all pretty versed in ordering ourselves a takeaway and having a glass or two of wine instead of heading out for a meal.

Pet shops and supply stores

The last lockdown saw lots of people adopting pets to keep them company during lockdown. With the weather keeping you inside more, there’s a chance this could happen again.

The week of 16 March saw 121% more dogs adopted from Battersea than the week before, and 33% more cats.

This means that people are spending more money on pet supplies like beds, food, toys and even cat prosecco. This has helped companies like Pets at Home. And don’t forget that Christmas is coming – so all of these new pet owners will be filling stockings for their new four-legged friends.

But remember: a pet is for life, not just for lockdown.

Compare investment services

Table: sorted by promoted deals first
Name Product Price per trade Frequent trader rate Platform fees Brand description
Fineco
UK: £2.95
US: $3.95
EU: €3.95
N/A
£0
Your first 100 trades are free with Fineco (T&Cs apply)
Fineco Bank is good for share traders and investors looking for a complete platform and wide offer. The minimum deposit with Fineco is £0. Capital at risk.
eToro Free Stocks
£0
N/A
£0
Capital at risk. 0% commission but other fees may apply. The minimum deposit with eToro is $200.
Hargreaves Lansdown Fund and Share Account
£11.95
£5.95
£0
Hargreaves Lansdown is the UK's number one platform for private investors, with the depth of features you'd expect from an established platform. The minimum deposit with HL is £1. Capital at risk.
Degiro Share Dealing
UK: £1.75 + 0.014% (max £5)
US: €0.50 + $0.004 per share
N/A
£0
Degiro is widely seen as one of the best low-cost share brokers, for people who are looking to trade regularly. The minimum deposit with Degiro is £0. Capital at risk.
interactive investor Trading Account
£7.99 (with one free trade per month)
N/A
£9.99 per month
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. The minimum deposit with ii is £0. Capital at risk.
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Name Product Minimum deposit Maximum annual fee Price per trade Brand description
InvestEngine stocks and shares ISA
£100
0.25%
£0
Offer - £50 welcome bonus for new customers. Subject to minimum investment. T&Cs apply. Capital at risk.
Moneybox stocks and shares ISA
£1
0.45% and £1 monthly subscription fee (free for first 3 months)
£0
Moneybox offers a smart and simple way to invest. Sign up in minutes and start investing with £1 via their award-winning app. Capital at risk.
interactive investor stocks and shares ISA
Any lump sum or £25 a month
£119.88
£7.99
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
Nutmeg stocks and shares ISA
£100
0.75%
N/A
Nutmeg offers three types of portfolios. Choose the one that goes with your investment style. Capital at risk.
Hargreaves Lansdown stocks and shares ISA
£100
0.45%
£11.95
Hargreaves Lansdown is the UK's biggest wealth manager. It's got everything you'll need, from beginners to experienced investors. Capital at risk.
Moneyfarm stocks and shares ISA
£1500
0.75%
£0
Moneyfarm helps you meet your investment goals with fully-managed portfolios designed around you. Capital at risk.
Fidelity Stocks and Shares ISA
£1000 or a regular savings plan from £50
0.35%
£10.00
Fidelity is another good all-rounder, offering a good package at a decent price. Not suited for trading shares. Capital at risk.
Legal & General stocks and shares ISA
Legal & General stocks and shares ISA
£100 or £20 a month
0.61%
N/A
Legal & General is a big financial services company which offers insurance, lifetime mortgage, pensions and stocks and shares ISAs. Capital at risk.
AJ Bell Stocks and Shares ISA
£500
0.25%
£9.95
AJ Bell is a good all-rounder for people who to choose between shares, funds, ISAs and pensions. Capital at risk.
Saxo Markets stocks and shares ISA
No minimum deposit requirement
0.12%
£8.00
Saxo Markets offers a wide access to a range of stocks, ETFs and funds. Capital at risk.
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Name Product Minimum investment Choose from Fee for a £50,000 pension pot Brand description
Interactive Investor Pension
Any lump sum or £25 a month
Over 3,000 funds
Annual fee: £239.88, fund fees: £50-500
interactive investor is a flat-fee platform, which makes it cost effective for larger portfolios. Capital at risk.
Moneyfarm Pension
£1,500 (initial investment)
7 funds
0.35%-0.75%
Moneyfarm has pensions that are matched against your risk appetite, goals and planned retirement date. Capital at risk.
AJ Bell Pension
£1,000
Over 2,000 funds
Annual fee: £125, includes fund fees
AJ Bell has two different pension options, a self managed pension and one that is managed for you. Capital at risk.
PensionBee Pension
No minimum
9 funds
Annual fee: £250-475, includes fund fees
Pension Bee is a newbie in the pension market. It helps consolidate your pension plans into one place. Capital at risk.
Hargreaves Lansdown Pension
£100 or £25 a month
2,500 funds
Annual fee: £225 (£200 cap if holding shares), fund fees included
Hargreaves Lansdown is the UK's biggest wealth manager. It's got three different retirement options. Capital at risk.
Saxo Markets Pension
Saxo Markets Pension
£10
Over 11,000 funds
No annual fee
Saxo Markets gives flexibility and control over your investment strategy. Capital at risk.
Penfold
Penfold
No minimum
4 portfolios
Annual fee: £375-455, fund fees included
Moneybox Pension
£1
3 funds
Annual fee: £225, fund fee: £60
Manage your money with an easy-to-use Moneybox app. Capital at risk.
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

Warning: This article offers information about investing and the stock market, but is not personal investing advice. The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please get professional advice, for example from a financial adviser.

*Disclaimer: The offers compared on this page are chosen from a range of products Finder has access to track details from and is not representative of all the products available in the market. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.

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